International mobile marketing company acquisition

Market Tech Holdings Limited

("Market Tech", "the Company" or "the Group")

Acquisition of majority stake in international mobile marketing company enhances digital strategy

 Market Tech Holdings Limited (AIM: MKT), the holding company that combines iconic real estate assets with an e-commerce business and owns and manages the main Camden Markets in Central London, is pleased to announce that it has acquired a controlling interest in Glispa GmbH, ("Glispa") a leading Berlin-based international mobile marketing business, for an initial consideration of €25 million and a working capital payment of €7 million, totalling €32 million (the "Transaction") with a further commitment to invest up to €20 million to accelerate Glispa's future development.

With Mobile Commerce ("m-commerce") expected to become the dominant business model and account for approximately 70% of all mobile internet revenue by 2017, Glispa will play a key role within the Company's digital strategy of becoming a full service solution provider for its own brands along with both current and future retailers, enabling it to deliver the Camden Market experience to a global m-commerce audience. 

Glispa

Glispa's business sits within the rapidly growing digital advertising sector benefiting from the proliferation of Mobile Applications ("Apps") and improved international m-commerce capabilities, which Digi Capital expects to create over $516 billion of sales by 2017. In the six years since foundation, Glispa has grown revenues at a CAGR in excess of 50%, achieving €45.5 million in 2013 (last audited accounts). Over this time it achieved strong profit growth, delivering profit before tax of €5.9 million in 2013. Management is expecting comparable profit before tax growth in the region of 20% for 2014.

Set-up as a "mobile first" business, Glispa employs approximately 120 people helping over 550 advertisers to reach in excess of 2 billion mobile and web users globally. Its m-commerce clients include many international, leading online businesses, such as Amazon, OLX, Hasbro and Alibaba. Glispa manages marketing campaigns; the media that carries them; and services the resulting consumer transactions from its activities.

The global reach of Glispa with both publishers and advertisers, coupled with unique technologies such as deep linking, native ads and scientific optimisation algorithms, all wrapped in a fully scalable big data technology, places Glispa in a strong position within the mobile commerce field

Following completion of the Transaction, Glispa will open an office in London, other international offices and work closely with Market Tech to expand its m-commerce strategy, both for the benefit of Market Tech's activities and Glispa's own rapidly growing client base.

 Commenting on the Transaction, Charles Butler, Chief Executive of Market Tech, said:

"This is a very exciting Transaction and I want to start by welcoming the talented team at Glispa to Market Tech and look forward to working with them. Glispa's market-leading technologies and team will add significant value to Camden Market and our business. Its digital capabilities will take us one step closer to becoming a full service solution provider and support the reinvigoration of Camden Markets, where we are already making significant progress, enabling us to bring the markets to a global audience.

We see the future of online retail being via mobile devices and Glispa's proprietary technologies are at the cutting edge of m-commerce, helping businesses interact with their customers on-the-go, thanks to the ubiquitous use of ever more powerful mobile handheld devices and communications networks."

The Transaction

Under the terms of the Transaction, Glispa's principal shareholder, Gary Lin and certain employees will receive consideration of €25 million and a working capital payment of €7 million. The Transaction results in Glispa Global Group Ltd a new UK holding company, being the ultimate 100% owner of Glispa GmbH. Market Tech will own 75% and Gary Lin will own 25% of Glispa Global Group Ltd. Market Tech is committing to invest up to a further €20 million to accelerate Glispa's future growth, including via inorganic expansion where value-enhancing opportunities exist.

Gary Lin will have a put option over his 25% of the company that can be exercised between years two and four for a further consideration of €15 million and Market Tech has a call option over the same shares which can be exercised after two years for a further consideration calculated as the higher of market value and €20 million.

- Ends -

Enquiries

About Market Tech

Market Tech combines the iconic Camden Market real estate assets with an e-commerce business operated through an online platform called market.com. Its real estate assets business is focused on retail, leisure and entertainment. The Company owns approximately 11 acres of real estate assets in Camden, including the Stables Market; Union Street Market, (also known as Buck Street Market); Camden Lock Market; and Hawley Wharf, (also known as Camden Lock Village). The Company also owns separate real estate assets on Camden High Street; Kentish Town Road; properties on Jamestown Road, (including the Camden Wharf Building); and The Interchange Building on Oval Road.

www.market-tech.com